In Nebraska, rural transit agencies are grappling with financial challenges due to stagnant federal funding, rising costs, and increasing demand for services. The Nebraska Department of Transportation (NDOT) has seen federal funding remain between $11.1 million and $11.9 million annually since fiscal year 2022. This funding includes a mandatory allocation of 15% for intercity bus services, leaving approximately $9 million for the state’s 49 rural transit agencies.
Despite the steady funding, the demand for transit services continues to rise. Lancaster County’s transit program has experienced an annual 8% increase in boardings, according to Randall S. Jones, director of Aging Partners in Lincoln. In Scotts Bluff County, the Tri-City Roadrunner reported a significant 20% increase in boardings from fiscal year 2024 to 2025, as noted by transit manager Curtis Richter.
The financial strain on rural transit agencies was delayed by unspent funds from previous years and $18 million in COVID-19 stimulus money, explains Gibson, the NDOT division manager. “Well, once we got through all the CARES (COVID relief) money, and we were requesting budgets from our transit systems, we just didn’t have enough money to even fund their requests,” she stated.
Local burden
Rural transit agencies in Nebraska typically rely on federal, state, and local matching funds for reimbursable expenses. Normally, local government contributions are the smallest portion, making up the shortfall after federal and state funds. However, with federal and state resources stretched thin, agencies increasingly seek more support from local governments, which are themselves under financial pressure.
Frase, with the Blue Rivers Area Agency on Aging, highlighted the difficulty in securing additional local funding, saying, “When you go back to counties and ask for extra money, (they say) ‘Well, we don’t have it, we can’t give you any extra money.’”
In mid-May, Jones from Lincoln Aging Partners informed the Lancaster County Board that an extra $44,000 would be necessary for the rural transit program for the 2026-2027 fiscal year. The data presented to county commissioners revealed a 44% decline in federal funding over the past two fiscal years. Although the county has yet to finalize its budget, commissioners across Nebraska are wary of the increased funding requests amid tight financial conditions.
